Farmers talking with laptop

Four reasons why co-creating with your customers drives business performance

We’ve noticed that the past decades have seen a significant and positive shift in philosophy with product design and development. It used to be that entrepreneurs and designers would be reminding themselves of Henry Ford’s quip – “ If I had asked people what they wanted, they would have said faster horses.” If in doubt, the product development team knew best – and through their own creative brilliance, they could deliver the best solutions.

Then came the focus on technology, with the oft-cited Skunk Works example. Engineers and product teams craved big budgets and siloed spaces, where they could deliver fast-paced and radical innovations to unleash on the market.

None of those philosophies are wrong – but we think they are both incomplete. And we’re encouraged to see more and more organisations and entrepreneurs recognising the power of bringing customers into the product design and development process from the earliest stages.

We see the impact of customer centred design at Rezare each week. So we’re encouraged to see the wave of articles giving the fantastic advice – go and develop with your customers. It’s good advice! When this advice is partnered with strong technological capabilities and agile processes – good things happen.

Many of the articles just conclude with an encouragement for you to go and talk to your customers. Go to their world. Meet them. Understand them.

But two key questions are often neglected:

  1. Why should we go and talk to our customers?
  2. How should we go about it?

In this blog, we’ll cover the first question – why is it important to go and talk to our customers?

At Rezare Systems, we’ve discovered four key reasons why designing meaningful interaction with your customers can drive fantastic product development.

  1. Your customers are the ones who will use the product.

    We know this sounds obvious – but it is deceptively easy to get so focused on your product, you forget about the people who are going to use it. The result? A focus on technology and design, and a product that may have all the latest features – but is incredibly difficult for your customers to use.

    And – the vast majority of the time – your product development team are focused on solving somebody else’s problem. Agritech firms are designing products to be used by farmers – and many the engineers aren’t farmers in their spare time. Left unchecked, this results in many assumptions – rather than a best-fit solution.

    Designing meaningful interaction with your customers as you develop brings them to the heart of your process, and reminds every member of your team that they are the ones who will use the product. This means their voice and their needs must be listened to and integrated into your product design.

  2. Designing with your customers increases your speed of development (and reduces wasted development time).

    If you work in product development – you know the importance of speed. It is essential the product gets to market as quickly as possible, without compromising your value proposition. The longer the product stays in development, the more expenses rise, and the greater stress this can place on cash-flow.

    One of the greatest threats to the development process is dead-end development. Each sunk labour-hour into developing features that don’t make it to launch is a costly endeavour, adding wasted time and resource to the development journey.

    When you bring your customer to the heart of your development processes, you don’t’ spend time building things that aren’t valuable. Instead, you only focus your development on features that you know are valuable and meet a real customer impact. How? Because your customer is with you, every step of the way.

  3. Co-design identifies little moments that lead to big success.

    At Rezare Systems we like to explore hinge moments. These are the seemingly-small discoveries about the users’ problem and process, that result in big success when integrated into the product.
    Most products live and die on small moments of value – which we only discover when we’re interacting with our customers along the journey.

    Case in point – one online marketplace was seeking to redesign their interface. They involved customers for the journey, and discovered a meaningful insight – customers like to buy products when they can receive instant answers to their questions or offers from the buyer. In short – they want velocity to their communication.

    So, the marketplace decided to add a small little feature. Each listed item had a little indicator that would also show if the seller was online. This would mean that any questions or offers would be responded to faster.

    The result with this little tweak? 4% more contact by users, 10% more contacts using the chat function, and an increase in revenue for the company.

    Discovering these hinge moments can be critical to the success of your product, and trying to find them without your customer’s input is like spitting in the dark.

  4. Designing with your customers builds trust and loyalty

    Bringing customers into the product design process sounds scary. What if their – or our – ideas are bad? What if we can’t solve their problems? What if we discover that our current solutions aren’t great solutions?

    All of these things can happen. However, research from the Delft University of Technology in Holland highlighted that co-design with your users results in higher loyalty between your customers and your company – regardless of the result of the journey.

    In short – users enjoy being involved in designing the products they are going to be using. They appreciate their wisdom and experience being drawn on, and often they enjoy seeing the inner-workings of your company.

    We’ve found forming these relationships with a range of users often results in ongoing insights – as they provide feedback on problems and products long after any formal communication. They talk to their friends about their experience, and often look forward to the next engagement

We believe the above four reasons are compelling enough for you to consider moving to co-design with your users. 

But – how do you do that?

Our next blog post will provide you with six key actions for designing powerful conversations that deliver meaning and value for your product design process – and a great experience for your users. In the meantime, if you have any questions about designing with the customer in mind, and how this might help with your idea, product or service – get in touch with us here.

Supermarket shopper

Digital data in the agri-food supply chain

Established companies and technology start-ups are all racing to create solutions that better manage agricultural data in supply chains. Does this mean radical new transparency for farmers and producers? And have we thought through the implications for data collection, management, and ownership?

In this post:

What is agricultural data?

Definition of agricultural data;

The facts, metrics, and statistics that describe elements of one or more farming or agriculture operations.

Most farms collect data in some form. Much of this may be in personal notebooks and mandatory compliance forms. Precision farming equipment, machinery, and mobile and desktop apps also collect agricultural data.

Most farmers collect information to:

  • Support improvements to farm management;
  • Follow government directives; or
  • Have something interesting to talk about in the pub.

So why are processors, food service and retailers, and dozens of internet start-ups becoming more interested in on-farm data?

How rich digital data can benefit agri-food supply chains

Three ways that digital data can benefit consumers, retailers and processors in the agri-food supply chain are:

  1. Traceability and tracebacks;
  2. Forecasting and efficiency; and
  3. Supporting product claims.

1.      Traceability and tracebacks

Tracking animals and crops through the supply chain helps the entire chain to respond to concerns about food safety or disease. This is especially important in livestock industries where animals move between farms, often through shared facilities.

Even for crops, on-farm records can establish linkages between the fertilisers and slurries, pesticides and herbicides used, and the resulting product.

2.      Forecasting and efficiency

Purchasing and processing goods from biological systems carries uncertainty and risk. Crop yields, dry-matter, or flavour will vary from the sector “average”. Animals may not be ready when first predicted or vary in how they meet processing specs.

If on-farm data were available before harvest or delivery, processors and retailers could predict the likely quality, timing, and specification of supply.

With enough lead time, processors and marketers could better match demand and processing capacity to supply. A dairy processor might vary the mix of UHT, cheese, and powder products based on expected quantities, fat, protein, and calcium levels. A fruit marketer could negotiate different market commitments based on predicted ripeness and flavour profiles.

Connected data may allow market signals to flow the other direction also. With the right information, producers could adjust harvest dates or livestock delivery to achieve target specifications and match market demand.

3.      Supporting product claims

Consumer interest is driving the creation of differentiated products, which make claims about what they do or do not contain. Examples might include:

  • “free from x”,
  • “organic”,
  • “naturally produced”,
  • “grass-fed”,
  • “local”,
  • “A2 beta-casein only”, or
  • “higher welfare”.

Consumers can see differentiation like “chocolate flavour” or gold kiwi fruit. “Credence attributes” are types of differentiation that can’t be seen. Consumers can only evaluate these based on trust and the story that supports the claims.

Small-scale producers can single-source from one or two farms that they own and closely control. For supply at scale, the evidence and controls to support credence attribute claims must be based on data and audits. And even audits make substantial use of agricultural data collected on farm.

Challenges of data in agri-food supply chains

Making effective use of agricultural data to benefit the supply chain is a worthy goal. In our experience, it is not necessarily straightforward. If you intend to use on-farm data to support an agri-food supply chain, there are four key challenges to consider:

  1. Data collection effort and methods;
  2. Data quality and completeness;
  3. Data flow between organisations; and
  4. Data ownership or control.

1.      Data collection effort and methods

With some exceptions, farmers have not traditionally been proponents of formal data collection. A few agribusinesses have built a culture of data gathering and analysis, but many farms would collect the minimum possible.

Recording has often been informal. Data to support a decision might appear on paper, in a notebook, or on an embedded device. After the on-farm decision, data may be discarded, having never been transcribed or centrally stored.

Apps are a great improvement over desktop software for data collection. But, collecting agricultural data is not as simple as rolling out a new app. Design effort needs to go into establishing when, how, and why data will be collected. You need to consider appropriate incentives and support.

A powerful data collection incentive is to immediately return useful insights to support on-farm decisions. For instance, a tool tracking mobs of animals for a processor might graphically show small changes the producer might make to improve their returns.

Remote sensing, image processing, and Internet of Things (IOT) devices promise to take farmer effort out of data collection. In our opinion, this could be transformative. At present the cost of some devices (compared to their perceived benefits) is still a challenge, as is network connectivity. Rollout of 5G networks may improve this!

2.      Data quality and completeness

Data quality issues in agricultural data don’t always arise from insufficient validation of input boxes. Sometimes just the opposite! Issues include:

  • Software and tools that are too clumsy to use or take too long, so don’t get used.
  • Overly tight validation that forces farmers to lie or “fudge” data to get it accepted.
  • Farmers who record results they believe that they should be getting, rather than what is really occurring. A farmer once told me about lamb growth rates that matched industry best benchmarks: I only to discovered later that they did not own any weigh scales.
  • Farmers recording data “just to tick the boxes”, so records are abbreviated, approximated, or (potentially) fabricated.

Transcription errors are another common cause of problems with data quality. We can understand this where data is captured on paper and later transcribed (and certainly in-field data collection can reduce errors). We have also seen real cases of manual transcription between software systems – with an advisor placing their laptop by the farmer’s computer so they can manually re-enter data from one screen to the other.

For supply chain data to be timely and useful to all parties, careful attention needs to be paid to the underlying design issues that cause missing and inaccurate data.

3.      Data flow between organisations

Supply chain networks face potential challenges in managing the flow of data between organisations. For example, farmers may potentially make use of several similar-but-different tools that capture data on farm. Or supply chain partners may request that a grower or farmer use their preferred tool – which can be challenging if the grower sends produce to multiple markets with different preferences!

In an ideal world, producers would not be locked into a single software tool or equipment manufacturer. Use of global standards would allow farmers, growers, processors and retailers to “mix and match”, selecting the best tool for their circumstances with confidence of compatibility. 

Such e-commerce standards have existed between large supply chain partners for many years. Consider electronic ordering, ship notifications and invoices exchanged in the automobile supply chain, for instance. Equivalent progress in the agricultural market has been slow and fragmented, although initiatives such as ICAR, DataLinker, and AgGateway are changing this.

4.      Data ownership or control

As supply chains start to leverage agricultural data, a key question that needs to be asked is “who owns or controls this data?”. Is it the producer, the manufacturer of on-farm equipment, a software vendor, or the processor or market partner who receives data?

It may be tempting to take the approach of “possession is nine tens of the law”. If the data has made it into our database, surely it is ours to use?

With some exceptions, rights to control data fall under copyright law. This leaves the “ownership” decisions about who can use data, and for what purpose to the party who invested time or money to create it – unless changed by a contract.

Surveys show that farmers worry about who controls and uses their data. Surveys of US farmers from 2014 and 2016 showed that 77% of farmers were concerned or very concerned about which entities could access their data, and whether it could be used for regulatory purposes. The November 2018 Farm Credit Canada survey showed similar results.

These concerns motivated the US Farm Bureau to draft its Privacy and Security Principles for Farm Data, and the NZ pastoral farming industry to create the NZ Farm Data Code. The position of these codes has been that organisations and farmers should explicitly agree what data is shared, and for what purposes, and that the starting point should support farmers rights to data about their businesses.

When we work with supply chain and agritech companies, we recommend that organisations are definite about the uses to which they will put data, and that they communicate this clearly and trustfully with producers.

In summary

There are compelling reasons why supply chain organisations in procurement, processing, marketing and retail, are looking to make greater use of agricultural data. Effective use offers greater forecasting accuracy and supply chain efficiency, as well as supporting differentiated product claims. If this is your vision, you’ll also want to consider how you will tackle the challenges of agricultural data – collection, quality, connectivity between organisations, and rights to data.

Rezare Systems helps organisations collect and make sense of supply chain data. We focus on your intended outcomes, rather than a single technology. We use design-led processes to collaboratively look across the issues of collection, quality, connectivity and rights – to identify what must be tackled, and when. If this resonates with you, let’s discuss.